Intel to Craft Chips in Vietnam
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Intel today pledged to put up $300 million to build a semiconductor manufacturing and test plant in Ho Chi Minh City, part of the company's quest to expand its operations in overseas.
The project, which will begin immediately, is something of a milestone: The plant is the first move by a chipmaker in Vietnam.
"We applaud the progress the country has made in building up their technology infrastructure and the support of education programs to advance the capabilities of the local workforce," said Intel Chairman Craig Barrett, in a statement.
Intel said the plant will expand its presence in Southeast Asia as part of the company's digital ASEAN (d-ASEAN) program for creating a stronger digital workforce to inject technology into education and government.
The Vietnam facility, which is expected to give jobs to 1,200 people, will also meet a broader goal: By the end of 2006, the company plans to invest over $6 billion worldwide for capital additions.
The Vietnam facility will be the seventh assembly site of Intel's global network. Other sites include Penang and Kulim in Malaysia; Cavite in the Philippines; Chengdu and Shanghai in China; and San Jose in Costa Rica.
Intel has made other moves recently to build out its worldwide arsenal in its war with rival AMD. Some make the Vietnam move look small by comparison.
Just last December, the Santa Clara, Calif., vendor unveiled plans to build a major chip manufacturing plant in Kiryat Gat Israel for $3.5 billion.
In July 2005, the chipmaker announced a similar plant for Chandler, Ariz., to the tune of $3 billion.